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RBZ Gold Coins: Govt Trying To Moderate Very High Demand For USD - Analyst

RBZ Gold Coins: Govt Trying To Moderate Very High Demand For USD - Analyst

Zimbabwean economist Prosper Chitambara has said the Reserve Bank of Zimbabwe’s Mosi-oa-Tunya gold coins are a government’s attempt at moderating the very high demand for the United States dollar (USD).

The central bank Monday introduced disbursed 2 000 coins to commercial banks. Chitambara told NewZimbabwe.com:

The government is trying to moderate the very high demand for the U.S. dollar because this high demand is not being matched by supply. 

The expectation is that … there will also be moderation in terms of the depreciation of the local currency, which should have some kind of stabilising effect in terms of pricing of goods.

Internationally, gold coins are used in countries such as China, South Africa and Australia to hedge against inflation and as an investment opportunity, although they are not as widely used as currency as envisaged by Zimbabwe’s central bank.

For Zimbabwe, we are in chronic hyperinflation so the expectation is that there will be a huge uptake of these gold coins. However, most Zimbabweans struggle with daily survival and won’t be able to buy them

For the common man, there is not really much to benefit directly from this, especially if you don’t have any excess cash.

Many people have no money for bread, let alone for savings. The expectation is that indirectly it will benefit the ordinary person through moderating the prices.

According to a statement recently issued by the central bank, any individual or company can buy the coins from authorised outlets such as banks and can keep the coins at a bank or take them home.

Foreigners can only buy the coins in foreign currency, said the central bank.

Meanwhile, trust in Zimbabwe’s currency is low after people saw their savings wiped out by hyperinflation in 2008 which reached 5 billion%, according to the IMF (231 million per cent according to official statistics).

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19 Comments

Kkkkk 2 weeks ago

But it will not work wooo


🙆🆘 2 weeks ago

180 days ndisingatengi ko kana ndichida kuenda kuno hodha muzanzi ndodiii yeku spinner ka iti iri mu Zim .Ini ndombo chengeta Mari dzangu ndozotenga ma coin ekuratidza ma chicks kuti ndiri mbinga later .Ukataridza **** inodiwa ipapo ipapo wena .


the Zebra 2 weeks ago

these Gold coins are bound to fail like all economic policies previously implemented due to lack of confidence from Zimbos


*** deception 2 weeks ago

deception

CDE 2 weeks ago

They failed already even before their introduction the majority was smelling description about them...

VZ 2 weeks ago

hapana kwazvinosvika izvi, command economics


WIILIAM SONBOY CHINEMBIRI 2 weeks ago

We shall forever vote for the mighty ZANU PF nomatter even if you try to be sikhala we will Judah jongwe you.

Ndini wenyu
William Sonboy Chinembiri
(THE BUSH LAWYER)


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Ghost protocol 2 weeks ago

Ko rape inobvumirwa here ?????


c 2 weeks ago

CCC real change


Ginimbi 2 weeks ago

Ghost protocol. Rape haibvumirwe asi rape yemuriwo idyai henyu


tafman 2 weeks ago

we r using this platform cz we can't keep up with increases in data tariffs. how will you expect us to find US1 800 to buy a gold coin which is usable after half a year?


Mwana muparadzi 2 weeks ago

Mmmm ED and Zanu ndavatadza ini apa Kuba kwega kwega. Kana ngoma yorira inenge yakuda kudambuka


😂 2 weeks ago

😂 Way overpriced 😂 only for money laundering 😂 😂 😂


dispenser 2 weeks ago

This system is meant for e rich


........... 2 weeks ago

Economics .hooooo .kubva zvanaka


ZANU PF OFFICIAL 2 weeks ago

we are looking for USD for campaigns since we are towards elections.after 6months these gold coins are useless for your warning don't buy them.


Kule Dhambi 1 week ago

It will not work. Simple


Kule Dhambi 1 week ago

It will not work. Simpuu!



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